Cleveland Clinic’s net losses for the year so far have exceeded $1.5 billion as labor costs remain elevated.
The Ohio-based nonprofit reported $316.3 million in operating losses in the first three quarters of 2022, compared with a $549.44 million gain in the year-ago period, according to financial statements released this week. Investment losses totaled $1.26 billion.
Expenses in the first nine months jumped 15.5% to $9.21 billion, including a 16.3% increase for salaries and wages, in addition to increased costs for supplies, pharmaceuticals and purchased services.
Total revenue came to $9.47 billion, a more than 4% year-over-year increase.
In the third quarter alone, Cleveland Clinic’s expenses rose 15% year-over-year to $3.14 billion. Revenue increased 7.7% to $3.31 billion, although not enough to stave off operating losses exceeding $28 million after factoring in expenses related to interest and reduced asset value.
Cleveland Clinic’s latest results reflect an ongoing tough year, with staffing shortages and inflation dragging on financial reports industry-wide. The Ohio system posted a $1.07 billion net loss in the first half of 2022, including a net loss of $786.93 million in the second quarter.
Credit rating agency Fitch Ratings downgraded the nonprofit hospital sector’s outlook to “deteriorating” earlier this year.
Also this month, Renton, Washington-based Providence recorded a $1.1 billion operating loss during the first three quarters of 2022. And Chicago-based CommonSpirit Health posted a net loss of $397 million in the first quarter of its fiscal year 2023. Ascension, a nonprofit Catholic health system based in St. Louis, reported an $811.83 million net loss in its first quarter.